Business Insurance

Never Assume that Subcontractors Are Covered Under Your Business Insurance Policies

Business Insurance Now — Thu, 08 Jul 2010 15:24:31 GMT

If you use subcontractors to help complete jobs – and nearly all of us small business owners do; make sure that your contractors have their own insurance policies to utilize. In the unfortunate incident that your company is sued because of work that a subcontractor did, many small business owners will be shocked that their own liability policies are not enough to cover the suit. Technically, the subcontractor does not work for your company, is not paid as an employee, and therefore receives none of the coverage that your small business insurance policy provides.

If a lawsuit is brought against you, it is already too late. Don’t put your business under unnecessary risk; make sure that your subcontractors have adequate insurance to cover a claim for their work. Also, it is a good idea to have ironclad subcontractor agreements drafted up so that you can ensure that each party is responsible for the work they provide.

You should also ensure that your subcontractors have the proper insurance coverage out of respect for them. Nobody likes to be blindsided by lawsuits, and ensuring that your subcontractors are covered will only help to grow the professional relationship that you two have.

For more information about protecting your small business through work that was provided by subcontractors, please visit the TechInsurance Small Business Center.

Small Business Owners and Workers Compensation Insurance – A Match Made in Heaven

Business Insurance Now — Wed, 07 Jul 2010 22:10:43 GMT

One thing that keeps small business owners up at night is the threat of lawsuits from their employees. No matter how friendly of an environment your workplace is, if an employee slips and falls while at work, gets hurt lifting some computers or gets in an accident while on the clock, they could make a worker’s compensation claim against your business.

In doing so, you could be held liable for hospital bills and salary compensation for their missed time. Nobody wants to have to pay those expenses out of pocket, so workers compensation insurance becomes even more crucial.

If you are worried about paying high premiums on your workers comp policies, consider taking a look at your internal safety measures. Do you have proper warning signs in place around machinery and equipment that could be hazardous? Are employees required to take regular breaks so that they are not working while fatigued?

There are any number of ways to reduce your liability risk for worker’s comp claims as long as you are aware of injuries that could potentially occur while on duty.

For more workers comp insurance information, please visit the TechInsurance Small Business Center.

Is Everything Covered by My Errors & Omissions Insurance Policy?

Business Insurance Now — Wed, 07 Jul 2010 20:26:22 GMT

Many small business owners want to know just how much of their errors and omissions are covered by their existing policies. Let’s be clear though; errors and omissions insurance does NOT cover intentional acts to deceive or destroy. In other words, if you know that something was omitted or if an error was made, it ceases to become an error or omission and is no longer coverable by your insurance policy.

Many small business owners see errors and omissions coverage as a free license to infringe on copyrights, illegally discriminate, or avoid paying fines. None of the aforementioned items are covered under your errors and omissions insurance policy, nor will they ever be.

A big part of managing risk as a business falls on the quality control team. Sweeping items under the rug is not acceptable behavior whether your company is covered with errors and omissions insurance or not. Do your best to hire managers and team members who take pride in their work so if and when a claim is made against your company, it can be covered by your insurance policy.

To learn more about how errors and omissions insurance works, visit the TechInsurance Small Business Center.

How Does Cancelling an Insurance Policy Affect Outstanding Claims?

Business Insurance Now — Tue, 06 Jul 2010 21:41:29 GMT

Before you cancel your existing small business insurance policy, it is important to know the repercussions of your actions. This warning goes out mainly to business owners who either have pending claims, or still have outstanding liability. Outstanding liability could be something as large as a job that is still in progress, or as small as a company still using a piece of software you developed 20 years ago.

Letting your policy lapse is essentially the same as cancelling. Any work that was done under the coverage of your prior policy will not be covered by your new policy if you let it lapse. Many small business owners are caught in unfortunate positions because they let their policies lapse. Don’t let this easy to avoid mistake happen to you.

Even if you have been operating a small business for 30 years, there are still insurance nuances that can take us all by surprise. It is important to stay educated about the insurance laws that change on a near daily basis – or you can discuss any questions with your business insurance agent. At the TechInsurance Small Business Center, you can read more about how cancelling your policy can affect your coverage.

Hired or Non-Owned Auto Insurance Policies for Small Businesses

Business Insurance Now — Tue, 29 Jun 2010 18:11:39 GMT

As any small business owner knows, if the business isn’t coming to the office, you have to bring the office to them. Depending on the size of your sales force or service department, you might need to purchase or rent company vehicles. In any case, if you or employees are driving on the road for a business related venture, your company will be held responsible for any accidents or injuries that occur involving your company’s vehicle.

If an accident does occur, there are a number of accident insurance policies that could come into play. First and foremost, the driver of the vehicle’s personal insurance will kick in, covering physical damages and injuries. Secondly, if you are renting the car, the additional insurance purchased at the time of the rental will cover any additional physical injury or liability damages. Lastly, the Hired Auto Insurance will cover your company in the event that the other party involved in the accident wishes to sue your company for any reason.

Because there are so many places to point fingers after an auto accident, especially one involving a company vehicle, it is vitally important that your company is protected against lawsuit. Speak with your business insurance agent to receive a quote on hired or non-owned auto insurance coverage.

Alternatives to Lawsuits: Dispute Resolution and Similar Strategies

Business Insurance Now — Thu, 24 Jun 2010 14:14:24 GMT

No matter how you feel about your clients, good or bad, it is a dreaded day when two business partners choose to go their separate ways. Sometimes this severance is accompanied by a potential lawsuit, depending on the nature of the split, which only makes matters worse. However, before a lawsuit ever sees the inside of a courtroom, there are alternative steps that can be taken to resolve the dispute.

Many times, this dispute resolution alternative must be built into the contracts beforehand, requiring both parties to try to settle things outside of court. Options for this resolution might include mediation or arbitration. Although slightly different, there are many advantages to each method. More about mediation and arbitration can be read here: Dispute-Resolution Alternatives

The long and short of it is this…do everything you can to keep the dispute out of court, make sure you have alternative dispute resolution ideas built into your contract, and more importantly, make sure you do all you can to maintain great relationships with clients and business partners.

For more tips on creating business contracts, please visit ContractEdge.com. Here you can find contract templates for independent contractors and subcontractors in a variety of technical business fields.

Adjusting a Small Business Insurance Policy – Increase Policy Limits

Business Insurance Now — Wed, 23 Jun 2010 15:55:03 GMT

Many small business owners have one question – “How flexible is my small business insurance policy?” Many times, small business owners need to increase their policy limits for a specific job or for a limited time and are unsure if they can do so without rewriting an entire policy. The short answer is “yes” your policy can be fairly flexible depending on your carrier, although, if you are adjusting your policy monthly, this might not go over well with the carrier.

Keep in mind that most adjustments to policy limits are increases to the amount of coverage necessary. If you are lowering your coverage limits, then something was probably wrong with your policy to begin with, or you are running the risk of being underinsured if a suit is ever brought against you.

You should also keep in mind that the amount of coverage you are able to utilize is based on your policy limit when the claim is filed, not when the job is delivered. This means that once you are done with a project, you should not immediately lower your policy limits in case a suit is brought against you. It is sometimes difficult to determine how much coverage you will really need when taking on a new job, so thankfully your existing policy can be flexible to handle necessary adjustments to your policy.

For more information on adjusting your insurance policy limits or determining how much coverage to purchase, please visit the TechInsurance Small Business Center.

Creating Successful Management Consultant Agreements

Business Insurance Now — Thu, 27 Aug 2009 22:46:57 GMT

Running a consultancy is a big enough task without having to worry about clients changing schedules, deadlines, and requirements. By having an agreement in place before the project even starts, you can avoid any unnecessary back and forth or arguing over when pieces of the project are due. Less stress on your team means less stress on the company and you personally.

Another benefit of having contracts in place before a project kicks off is that it is easier to show the value of your consulting. By clearly labeling who is responsible for what aspects of the project, you can ensure that your suggestions and ideas get implemented, or you don’t get held responsible for the success of that particular segment.

For more tips on creating successful management agreements, visit the TechInsurance Small Business Center. Here you can also find more resources on running a successful management consultancy.

Define IT Project Scope with Contracts Created Specifically for IT Managers

Business Insurance Now — Mon, 24 Aug 2009 23:35:03 GMT

IT Project managers are in unique situations. Often times, you are brought in because the person in charge of managing the project was not doing a good job in the first place – otherwise, why hire you? This generally means that processes and tasks needed to make the project run smoothly are not in place. It is important that before you undertake managing an IT project, that you clearly define the project requirements. Having a contract that clearly states the details of the job will help you out in the long run. You won’t have to worry about the client making last second changes, moving deadlines, etc. because you have it all in writing!

IT Project Management is a tough role. For tips and tricks on running a successful IT Project Management firm or independent practice, visit the TechInsurance Small Business Center.

Architects Require Insurance to Run Their Business

Business Insurance Now — Mon, 27 Jul 2009 20:59:18 GMT

Architects are at risk for many different types of liability, the most obvious of which comes from any oversights they might have made in the drafting of blueprints. It is important that, as an architect, you are fully insured against any suits that might come your way. If you are an independent contractor, you will need to make sure that you are covered with errors and omissions insurance. If you are the owner of an architectural firm, you will need the same coverage as an independent contractor, but you should supplement that coverage with general liability insurance or employee dishonesty coverage in case anyone gets hurt while visiting your offices or if one of your employees has a dishonesty suit brought against them.

To read more about the importance of insurance coverage for architects, visit the TechInsurance Portal. Here you can find resources on running an efficient small business from small business insurance quotes, to best practices on drafting contracts and working with subcontractors.